When is the right time to buy a long term stock (1+ years)?

[kathiedo2]

Hi Everyone,

This week I am planning on buying a long term stock. Probably it will be Coca Cola. However for the long run I am clueless when to time the order and buy the stocks. Any recommendations on this?

I would say I could just buy at the current purchase price (purple line). Currently my order (yellow line) is placed slightly above the purchase price. I've set my stop loss at the lowest pivot point in the graph on 41.87 (-1.5% of the order price). Is my timing to place the order and buy the stock right here? All recommendations are welcome offcourse! Thanks!

[kcjiebef79]

David,

Hopefully you learned something with today's price action. Buying stock the day before earnings is a higher risk/reward situation than might be prudent. Unless you're really confident that you know what will happen after earnings (and confident that you know more than all of the professional traders who watch the stock for a living), you should probably wait until after earnings. With KO today, the stock dropped a point. So I'd wait a couple more days to let the market digest the fallout and then invest. Today's candle suggests a bottom, so it might be up from here.

In general, I prefer to buy near the low of a trading range, or upon the breakout of a trading range.

John

[Kelvinplup]

I have free bi-weekly trade setups & lessons at my site... it's designed for long term trading. Other than that you can go Google Bulkowski pattern site and get an idea of reversal patterns.

[KennethOi]

Hi John, Thank you very much!

Very good to know its best to always wait untill after earnings. Yes I heard the news about KO the other day. Luckely, I didnt buy the share yet. A lesson learned and also to always consult onlinetradersforum http://onlinetradersforum.com/styles/default/xenforo/clear.png.

David

[kimberlydi11]

Thanks TradeLikeSpock, I will check it all out this weekend!

David